Will Electricity Prices Go Up In Australia In 2023?

Australia is currently undergoing an energy crisis. The twin shock of pandemic-induced supply chain issues and the ongoing conflict in Europe have triggered this energy crisis which was given people a lot of uncertainty about the future. 

Most people have a lot of questions they want to be answered. Will electricity prices go up in Australia in 2023? Is there anything you could do to bring down your electricity expenditure? Should I invest in solar panels? 

In today’s blog post, we will discuss the reality of the current retail electricity market and what you can do to shield yourself from this extreme volatility.

The Rise in Electricity Prices

In some parts of Australia, electricity prices have already risen by around 25% since April 2022. There is a growing consensus that prices will continue their upwards trajectory in 2023. In terms of numbers, prices are expected to rise by up to 35% or even more, in 2023.

For the average consumer, the rise in prices means that if they have been paying around $3000 annually in electricity bills, they should expect to pay upwards of $4000 in 2023. The primary driver of this insane increase in prices is the conflict in Europe along with the supply chain disruption caused by the pandemic.

What Can You Do to Save Money on Electricity?

It’s certain that electricity prices will rise. Analysts are expecting that the increase is here to stay until the transition from fossil fuels is completed; however, that possibility is still several years away.

Nonetheless, there are actions you can take today to shield yourself from the increase in electricity prices and price volatility in the near future. The best way for you to save money on rising electricity prices is to make the switch to solar power. 

Advantages of Investing in Solar Power

1). Save Money

One of the main benefits of investing in solar power is that it helps you save a ton of money. For example, with a 5 kW solar system, consumers in Queensland can save more than $1,100 each year on their electricity costs. This means they should be able to get their investment back within 4 years. The savings rate and payback period will vary depending on the size of the solar system as well as the electricity prices.

2). Available Rebates

The government at both state and federal levels offer plenty of rebates and incentives. In fact, most households don’t need to worry about the upfront cost as it is within their reach. When you ask for an estimate from an experienced installer such as GCR Electrical Systems, you will get a quote after taking into account the available rebates.

3). Long-Term Protection

With a solar power system, you’re set for the next 25 to 30 years. Solar panels are rated to perform up to at least 80% of their initial electricity generation capacity for 25 years. In simple terms, it means that your solar panels won’t lose more than 20% efficiency in 25 years. Even after 25 years, they won’t suddenly stop producing electricity even if the efficiency goes down. Once your initial payback period is complete, these panels will be putting free money into your pockets.

Final Thoughts

Electricity prices in Australia have been going up for quite some time, and 2023 isn’t going to be any different. In fact, many experts forecast the prices to move up by at least 35% during the next year and they could rise even more. 

Fortunately, you don’t need to bear this increase in electricity prices. Get a solar power system today and start not only saving money but making money for the next 25 years.

GCR Electrical Systems is the premier supplier of solar power systems in the country. We have partnered with the best solar panel manufacturers to provide the very best to our customers. We have installed more than 1000 solar power systems. 

Please contact us today on (07) 4120 7004 or leave an enquiry.